Performing Analytical Procedures
Overview
Canadian Auditing Standards (CAS 315 and CAS 520) require analytical procedures at all stages of the audit. Preliminary analytics are performed at the risk assessment phase to identify balances that require an audit response. Substantive analytical procedures are a powerful tool in obtaining sufficient appropriate audit evidence. Final analytics are performed during the completion phase of engagement to ensure all risks have been addressed.
CAS 520 sets out the requirements in performing substantive analytics in a 5-step approach. Using case studies and practical examples, this course will address how to perform and document each step including understanding the various types of analytical procedures, determining their suitability, developing expectations and investigating differences. The course will also illustrate preliminary and final analytics along with guidance and ideas on how to perform and document in an efficient and effective manner saving time on engagements.
Learning Objectives
By the end of the session, participants will be able to:
- Appreciate CAS requirements related to analytical procedures
- Implement an efficient approach for performing preliminary and final analytics
- Identify and understand where to apply different types of analytical procedures
- Know how to implement the 5-step approach
- Develop a process for setting expectations
- Document procedures performed and conclusions reached
- Identify and overcome barriers in performing analytical procedures
Course Content
Module 01
Introduction and overview of preliminary, substantive and final analytical procedures
Module 02
Performing and documenting preliminary analytics
Module 03
Substantive analytical procedures requirements overview
Module 04
Types of substantive analytical procedures
Module 05
Examination and guidance on the CAS 520 5-step approach to performing substantive analytics
Module 06
Practical application and documentation examples
Module 07
Performing and documenting final analytics
Module 08
Review of key points and action planning
Module 09
Resources